Mississippi Bankruptcy Attorneys Focused on Debt Relief
The prospect of declaring bankruptcy can be unbelievably stressful. It isn’t something you should have to face alone.
Whether you’re looking at Chapter 7 or Chapter 13 bankruptcy, the competent attorneys at Brown, Bass & Jeter can provide much-needed support during this trying time.
We understand that many people feel overwhelmed and embarrassed when filing for bankruptcy. The paperwork involved can be confusing, and your creditors will often have teams of lawyers at their disposal. Shouldn’t you also have reliable legal aid in your corner?
If you’re facing the possibility of bankruptcy, contact our Jackson bankruptcy lawyers to discuss your situation and find out the best way to proceed.
What Is Bankruptcy?
Bankruptcy is a legal process through which individuals or businesses that can’t repay their debts to creditors may seek relief from some or all of their liabilities.
As part of this process, a bankruptcy court assesses the debtor’s assets and liabilities and decides whether to discharge those debts so they’re no longer legally required to pay them. The main purpose of bankruptcy is to give honest debtors a fresh start while equitably distributing their assets among their creditors.
Types of Bankruptcy Filings
There are several types of bankruptcy filings in the United States, each of which is designed for different situations:
Chapter 7 Bankruptcy — Liquidation
Chapter 7 is the most common form of bankruptcy for individuals. It involves liquidating the debtor’s non-exempt assets to pay off their creditors. After the assets are moved, most remaining debts are discharged, effectively giving the debtor a blank slate. This procedure is typically reserved for those with limited income who can’t repay their debts.
Chapter 11 Bankruptcy — Business Reorganization
Primarily used by businesses, Chapter 11 allows companies to continue operating while restructuring their debts. It offers a way to keep the business alive and pay creditors over time. Both large corporations and small businesses can file under this chapter.
Chapter 13 Bankruptcy — Wage Earner’s Plan
Chapter 13 is for those with a regular income. It allows debtors to keep their personal property and pay their debts over a period of time, usually three to five years. It’s essentially reorganization for individuals.
Chapter 12 Bankruptcy — Family Farmer or Fisherman
Chapter 12 is similar to Chapter 13 but specifically intended for family farmers and fishermen. It provides debt relief to these tradesmen, recognizing their unique economic situation and financial challenges.
Chapter 15 Bankruptcy — International Bankruptcy
Chapter 15 deals with cross-border insolvency cases involving debtors, assets, claimants, and other parties in more than one country.
Each type of bankruptcy is suited to different circumstances and has its own eligibility requirements and procedural steps. Individuals or businesses considering bankruptcy should consult a qualified legal professional to understand which type is best suited to their situation.
Consult a Bankruptcy Lawyer in Jackson Today
If you’re considering bankruptcy, contact Brown, Bass & Jeter can help you determine the most strategic path forward. Call us at 601-895-2308 or complete our brief online contact form to talk to a member of our team.
When Should You Consider Filing Bankruptcy?
There are numerous reasons someone might declare bankruptcy. Here are a few of the most common:
- Inability to Pay Debts: If you’re unable to meet your debt obligations, bankruptcy may offer relief, particularly if your debts are unmanageable relative to your income and assets.
- Absolving Certain Types of Debts: Bankruptcy is effective for discharging certain types of debts, like credit card debts and medical bills; it’s less helpful for student loans, child support, alimony, and certain tax obligations, which typically aren’t dischargeable.
- Protecting Assets: If you have significant assets you want to protect from creditors, certain bankruptcy filings can help preserve these assets while managing debt.
- Improving Credit: Bankruptcy can negatively affect your credit score; however, if you’re already facing severe credit issues, it could provide a means to rebuild credit over time without making things much worse.
There are also some key considerations you must make if you’re weighing bankruptcy as an option:
- Be Willing to Follow Court Orders and Procedures: Bankruptcy involves many complex legal proceedings and requires adherence to court orders and procedures, including credit counseling and financial management courses.
- Explore Potential Alternatives: Possible options like consolidating your debt, negotiating with creditors, or making changes to your spending habits might be wiser, depending on your circumstances.
It’s important to consider how bankruptcy aligns with your future financial goals. While the process can provide relief, it also has long-term consequences that may affect your ability to obtain credit, buy a home, or start a business.
The best way to find out which chapter(s) you qualify for and how filing can help your situation is to schedule a no-obligation consultation with an experienced bankruptcy lawyer. The attorneys at Brown, Bass & Jeter will gather detailed information about your income, expenses, assets, and debts to formulate an appropriate course of action.
Does Bankruptcy Stop Collection Actions and Harassment?
One of the immediate benefits of filing for bankruptcy is the automatic stay, a federal injunction that prohibits creditors from taking any actions to collect against the debtor. This includes foreclosure, wage garnishment, bank account seizures, phone calls, etc.
The automatic stay remains in effect as long as the bankruptcy case is open (with some exceptions) and becomes permanent once a discharge is granted.
Debts that Can Be Discharged
Bankruptcy laws are designed to balance the financial security of debtors with the rights of creditors. Filing for bankruptcy allows those without the means to pay to be excused from their debts either partially or completely.
Here are some of the debts bankruptcy can erase or make easier to pay over time:
- Credit card debt
- Mortgage payments
- Car loans and lease obligations
- Medical bills
- Apartment and home lease obligations
- Utility bills
- Lawsuit judgments
- Personal loans
If you’re struggling with any of these types of debt, bankruptcy may be a viable option.
Debts that Can’t Be Forgiven
Certain types of debts typically can’t be discharged in a bankruptcy proceeding. These include:
- Student Loans: Student loans aren’t generally dischargeable unless the debtor can demonstrate undue hardship, which is a difficult standard to meet.
- Child Support and Alimony: These obligations are considered priority debts and are not dischargeable.
- Certain Tax Debts: Some tax debts, particularly recent income taxes or taxes for which returns weren’t filed, can’t be discharged; however, older, unpaid taxes may sometimes be absolved under specific conditions.
- Debts for Personal Injury Caused by DUI: Debts arising from personal injury or death caused by driving under the influence of alcohol or drugs are non-dischargeable.
- Fines and Penalties Owed to Government Agencies: Bankruptcy can’t forgive fines, penalties, or restitution imposed for violating the law.
- Condominium or Cooperative Housing Fees: Fees or assessments owed to a condo or housing cooperative typically aren’t dischargeable if the debtor wishes to continue living there.
- Debts Not Listed in the Bankruptcy Filing: If a debtor fails to list certain debts in their bankruptcy filing, those debts may remain.
- Legal Fees and Court Fines: Legal fees associated with certain family law issues and court fines aren’t usually subject to forgiveness.
- Debts From Fraudulent Acts: Debts incurred through fraud, including those stemming from luxury purchases or cash advances taken shortly before filing, aren’t dischargeable.
A knowledgeable bankruptcy attorney can tell you more about which of your debts can be eliminated when you petition for bankruptcy.
Schedule a Free Consultation with a Bankruptcy Lawyer
Arrange a consultation with a skilled Jackson bankruptcy lawyer at Brown, Bass & Jeter and take action to secure your financial future.
How to File for Bankruptcy in Mississippi
Filing for bankruptcy involves a lengthy, multi-step process. It typically involves the following stages:
1. Determine Your Eligibility
First, assess which type of bankruptcy (Chapter 7, 11, 13, etc.) best suits your situation. This will depend on factors like your income and debts and whether you’re an individual or a business.
2. Receive Credit Counseling
You must complete a credit counseling course from an approved agency within 180 days of filing. This session will evaluate your financial situation and explore alternatives to bankruptcy.
3. Hire an Attorney
While it’s possible to file for bankruptcy on your own, it’s strongly recommended that you retain the services of an experienced bankruptcy attorney. Professional guidance is crucial for navigating the legal intricacies of the process.
4. Gather the Necessary Financial Documents
Compile documents detailing your financial situation. This may include evidence of debts, income sources, assets, monthly living expenses, tax returns, loan documents, and property deeds.
5. Fill Out the Proper Bankruptcy Forms
You’ll need to complete several forms in order to provide comprehensive information about your finances. These forms will be part of your bankruptcy petition and schedules.
6. File a Petition
Submit your bankruptcy petition and schedules to the bankruptcy court. This act legally initiates the bankruptcy process. An automatic stay goes into effect upon filing, temporarily stopping most creditors from pursuing collection actions against you.
7. Pay the Attendant Filing Fees
There are fees associated with filing for bankruptcy, which vary depending on the filing category. In some cases, you can apply to pay the fees in installments or request a waiver.
8. Attend the Meeting of Creditors (341 Meeting)
You must attend a meeting with your bankruptcy trustee and any creditors who choose to come. At this meeting, you’ll answer questions about your financial status and paperwork under oath.
9. Complete a Debtor Education Course
After filing, you must complete an additional financial management course before your debts can officially be discharged.
10. Follow Additional Legal Procedures as Required
Depending on the type of bankruptcy you file for, additional steps may be involved, like proposing a repayment plan (Chapter 13) or asset liquidation (Chapter 7).
At the end of this process, most (or all) of your debts will be discharged, releasing you from liability. Focus on rebuilding your credit and managing your finances responsibly post-bankruptcy to prevent similar financial hardships in the future.
Consequences of Bankruptcy
Filing for bankruptcy offers near-immediate debt relief and the opportunity to take advantage of a financial reset. However, it also brings significant consequences.
For one thing, bankruptcy can severely impact your credit scores, making it difficult to obtain loans, credit cards, or favorable interest rates for several years. Certain personal assets may also be liquidated to settle debts.
Additionally, bankruptcy can affect your job prospects, especially in finance-related fields, and will remain on your credit reports for seven to 10 years, signaling high financial risk to future lenders.
Do You Need a Bankruptcy Attorney?
When you’re facing insurmountable monetary problems, time is of the essence. Acting quickly and making the decision to work with the legal team at Brown, Bass & Jeter when your finances start failing is the first step to regaining control.
Our highly skilled attorneys will offer dependable guidance every step of the way, performing the following actions on your behalf:
- Helping you understand your eligibility requirements and the different types of bankruptcy.
- Filing your petition with the U.S. bankruptcy court.
- Negotiating with your creditors at your 341 Meeting.
- Arguing on your behalf in court, if necessary.
- Helping you get a handle on your finances to make the most of your fresh start.
With these services, we aim to make the bankruptcy process as simple and painless as possible for our clients.
Speak with a Jackson Bankruptcy Attorney Today
Don’t let past financial missteps cast a shadow over your future. Connect with a Jackson bankruptcy attorney at Brown, Bass & Jeter today to set up a free, no-obligation consultation and begin getting your affairs in order.
Why Choose Brown, Bass & Jeter?
Electing to work with the experienced legal professionals at Brown, Bass & Jeter offers several key benefits, including:
- Abundant Experience: Our team possesses a comprehensive knowledge of various areas of the law, ensuring that your case is handled deftly and with due consideration.
- A Client-Centric Approach: We pride ourselves on putting our clients’ needs first and offering personalized, attentive service.
- A Strong Track Record: Our Mississippi bankruptcy lawyers have a long history of achieving successful outcomes for their clients.
Consult with a seasoned bankruptcy lawyer at Brown, Bass & Jeter today to learn more about how we can assist you.
